The United States and the new World Order

After the second world war, the world was devastated. Europe was in ruins. Germany, the aggressor, was disintegrated. The Soviet Union was in disrepair. Japan was in rubbles. But the United States was unscathed. The US was the only country whose production capacity and economic power was not adversely affected by the war. However, the Americans and their leaders learnt a lesson that you cannot live in peace when your neigbhours or allies are in crisis or war. It is a matter of time before the crisis will affect you either by refugees from your neighbours besieging your territory or the aggressor encroaching into your country. It can also affect you by reduced trades and economic relations with your war-ridden neighbours. The World War 11 ravaged the world with destruction and inflicted global poverty, hunger and despair on it.

The world gasped for peace, reconstruction, rehabilitation, redirection, purpose, dignity and restoration. There was a leadership vacuum. This was the period of the global outcry of, too little, too late. The great Franklin D. Roosevelt, the 32nd President of America and later his successor, Harry Truman, the 33rd President of America led America to rescue the World.

First was the founding of the World Bank and IMF commonly referred to as the Bretton Woods Institutions in 1944 to help rebuild Europe and Japan. Later, American discovered that what Europe required to be rebuilt was not loans but grants hence the Marshall Plan. Gradually the World Bank shifted its focus to restore financial stability and reduce poverty in the world. At the Monetary and Financial conference in Bretton, a new economic order was set up with an agreement that there will be a fixed relationship between currencies. It was decided that the American dollar (the greenback) would be the world’s reserve currency since US was undisputably the world’s most economic power holding two-thirds of the world’s gold reserve. This was followed by the founding of the United Nations in 1945 for global peace and harmony. The Food and Agriculture Organization, an arm of United Nations was founded in 1945 for global food security. The Marshall Plan was implemented in 1947 to restore the economies of Western Europe. It cost the US the sum of $13.1 Billion to implement. It remains undeniably the most benevolent gesture, sacrifice and grant that restored 13 countries of western Europe to economic prosperity and political prominence. The World Health Organization was founded in 1948 to expand universal health coverage. NATO, an alliance of countries of Europe and North America for co-operation in defence and security was founded in 1949.NATO remains the most successful defence alliance in the last 76years. Other global institutions founded by the leadership and most times with the initiatives of US included International Court of Justice, UNESCO, UNICEF, WTO, G7 group of nations, G20 group of nations. USAID is the large heart and giving/philanthropy arm of America. America also initiated the global consensus on global human rights, peace, international law, justice and norms. These institutions helped to maintain relative global peace, stability, reduce inequality and poverty as well as engender economic prosperity in the world. Indeed, there has not been any war of global dimension since 1945.The propensity of territorial acquisition and encroachment was eliminated. Territorial aggression vanished until the Ukraine-Russia war which started in 2022.Yes, there has been wars like Israeli -Arab war, Vietnam war, Israeli-Palestinian war, Iraqi war, Libyan war, Syrian war, Congo DRC, Sudanese War but none has been of global dimension or territorial expansion like the World 11.

America organized and held the world together around a series of noble ideas and global multilateral institutions that catered for the needs of the world. When the cold war which started in 1947 ended with the disintegration of the Soviet Union in 1991, America became the sole global superpower. With her triumph in the cold war, America’s brand of capitalism and democracy became the thrust of global economic and political system. Liberalization, free market economy, privatisation, globalization and competition became the recommended anchors of economic policies. The former Communist world emulated and adopted the capitalism principles in their economic management. By 1978, Deng Xiaoping led China to open their economy to the world. They established socialist market economy, developed capital market and promoted stock exchanges. They privatized most of the small and medium sized public enterprises as well as lifted price control. China promoted private investment and accepted foreign direct investment. This was the beginning of China’s industrial revolution and it has become the world’s manufacturing hub today. On its part, Russia after the collapse of the Soviet Union in 1991, under the leadership of President Boris Yetsin opened the Russian economy to the world through a series of post -Soviet reform policies which included price liberalization, currency stabilization, tax reforms, energy sector reforms and economic diversification. Other Asian countries like Japan, India, Singapore, Hong Kong, Taiwan, South Korea, Malaysia, Turkey adopted the free market economy. In fact, these countries became the economic miracles of the 20th Century through the adoption of free market economy.

The Washington Consensus became the template of economic development reform framework for the developing nations. The American Dollar (the greenback) became the currency of the world. The world became America’s market. Currency drives trade, trade drives wealth and economic prosperity. American and its Western allies prospered beyond their forecast. As at 1945, the average per capita income in the US was $12,100; by 2024, it was $82,769. It was at the height of this level of economic prosperity in 1999 that President Clinton in his state of the Union address, declared that “the promise of our future is limitless”. America influenced the world in diverse ways. It became the policeman of the world with the highest military and technological and economic might.

However, America also incurred the wrath of many of her admirers by the use of its might in imposing sanctions on many countries, engaging in removal of some countries’ leaders such as Gaddafi of Libya and supporting some despotic leaders.

In other spheres of life, America influenced the world in the area of culture. The American music, arts, Hollywood, dancing patterns, dress codes became the toast of the world. American businesses, goods and services began to command global market share. The American dream permeated the world’s ethos and values. This inspired Emerson to write “We may all be in the gutter, but some of us are looking at the stars”. The American evangelists propelled the global religious waves. The global work ethics and diligence, focus, enterprise of Cornelius Vanderbilt, Andrew D. Carnegie, J.P. Morgan, Henry Ford inspired the world. The newer American iconic entrepreneurs such Bill Gates, Mark Zackberg, Steve Jobs, etc enchanted and still enchants the world. The Asian Tiger such as India, China, South Korea, Singapore have emulated these values to their economic advantage and prosperity.

In all areas of human endeavor in which America has impacted and influenced the world positively, education has been the most permeated. America has some of the World’s best ranked universities with a culture of excellence in learning, research, innovation and technological breakthroughs. It is estimated that about 72% of the world’s 25 best ranked Universities are in the US. Some of the best technology and innovation companies like Microsoft, Apple, Meta, Google, etc are in the US. The world trooped and still troops to American universities and institutions. It can be justifiably argued that the economic prosperity and rebound of China, India, Japan, Germany and other parts of Europe can be traced to the outputs and contributions of their citizens who graduated from American universities. Till date, China, India, Singapore, South Korea, Taiwan and the rest of Asian Tigers still command the highest number of international students in American universities. China, the Asian tigers and other emerging markets bought American technologies, dissected them and reproduced them by way of technology transfer. They learned from that. Today, these countries are technological giants in their own rights. America is generous with their values. However, many American policy analyst believe that China steals, cheats in intellectual property and steals its way to economic dominance by not playing by the rules.

After 80 years of America’s led free world, the global scenario is changing. The new leaders of America seem to be crafting a new world order. An order of isolation, nationalism and protectionism which may throw away the refined ideals and models of capitalism, globalization, free trade, free and open international co-operation. Or at least modify them.

When the 45th President of the USA, President Donald Trump took office on 20th January 2017, he came up with the ideology of America First, to make America great again. (MAGA). When his tenure ended on 20th January, 2021, he did not seem to have achieved much of his protectionist agenda.

With his return to power on January 20th, 2025 as the 47th President of America, he is riding again on the philosophy of America First, a seemingly isolationist and protectionist agenda. In his address to the congress on Tuesday, 4th March, 2025, he stated, “Six weeks ago, I stood beneath the dome of the capitol and proclaimed the dawn of the golden age of America. From that moment on, it has been nothing but swift and unrelenting action to usher in the greatest and most successful era in the history of our country”. To Americans, he has chorused, “America is back” echoing the tenets of the American dream.

The highlights of his economic agenda, otherwise nicknamed Trumponomics, are:

· To cut $2trillion from the federal government’s annual budget, trimming of the federal government agencies and bureaucracies. Currently, America has a budget deficit of $36trillion.

· Unleash technology innovations, especially AI

· Promote fossil fuel prospecting and production by relaxing environmental regulations.

· Increase tariffs up to 60% on China and 10-20% on the rest of the world, especially Mexico, Canada, Germany

· Deregulation to stimulate growth in some sectors (especially self-driving vehicles and corporate tax cuts from 21% to 15%.

· Deport illegal immigrants (it is estimated that 50% of farm hands in the US is made of undocumented immigrants.

The intended and unintended outcomes of these policies are that:

· The US Dollar might strengthen.

· Corporate profits might increase, and the stock market might rebound.

· Tariff wars will ensue, which might dampen global trade and boomerang on American economy into recession.

· Supply chain disruptions might trigger off.

· There will be higher interest rates

· Inflation will rise.

· All these will impose greater & debt burdens and obligations on developing countries.

President Trump and his team believe that the present economic world order is skewed to drain the American economy and its people to the advantage of China, Mexico, Canada, Europe and the rest of the world. His strategy is to reverse this economic order, to recover the lost gains of the US and beef up the prosperity of America. His ideology is based on “Buy America”, “Invest in America,” “Develop America”, “Make America Great Again”. This is a clear case of economic nationalism and protectionism.

President Trump is not the first American to propagate the ‘America First’ ideology. It started with the America First Committee in 1940. The America First Committee was an isolationist pressure group that opposed America’s entry into World War 11. It had Robert Stuart, a Yale law student as its founder and Charles Lindbergh as its spokesperson. The philosophy was gaining ground and support in America until President FD Roosevelt delivered his legendary ‘’Great Arsenal of Democracy’’ Address on 29th December, 1940 which swirled American public opinion and support and enabled him to gain congressional approval for America to join the World War 11.

The philosophy sprang into political prominence again in 1952 when one of its adherents, Senator Robert Taft of Ohio became the leading candidate of GOP. However, in order not to lose the gains of the America’s successfully well-crafted new World order after the World War11, if Senator Taft had won with his protectionist ideology, the General Commander of the Allied Expeditionary forces of the US World War 11 , General Dwight Eisenhower, the first Commander of NATO forces was persuaded against his earlier refusal to run for the GOP ticket against Senator Taft. He won the GOP ticket and went on to win the American Presidency becoming the 34th President of US. This marked the survival of liberal capitalism. The next uprising of the American First isolationist adherents was with Pat Buchanan who ran for the Republican nomination in 1992, 1996 and in 2000 as Reform’s Party nominee. He lost the election.

In 2008, there was a “Buy American” provision in President Barack Obama’s fiscal plans. In criticising this provision in Obama’s plan, Nigel Lawson, former UK Chancellor of the Exchequer, wrote in his July 2008 Financial Times article titled, “Capitalism needs a revived Glass-Steagall Act”. “But there is another lesson of the 1930s. It is that although capitalism survives, it is capable of retreating behind a protectionist shell at great cost to global prosperity. This is a real danger today. The ‘Buy American’ provisions in Barack Obama’s fiscal boost is an ominous sign. The impulse to resort to protection when economic hardship suddenly strikes is, of course, always present. But there is today a dangerous new factor which magnifies the threat. The leaders of some of America’s largest corporations have already joined up with organized labour ((the AFL-CLO) to urge congress to impose tariffs against imports from countries (such as China for example) which are understandingly unwilling to bear the heavy costs of an obligation to curb their carbon dioxide emissions. There is considerable support in Europe notably within the European Commission and in France, for a similar approach. It is essential, both in the US and in Europe, that this is resolutely rejected. The first and most important requirement for the future of capitalism is the preservation of globalization and the massive benefits it confers on mankind and in particular in the developing world”.

Reverting to the present, this is the first time in America’s history when an apostle of American protectionism/nationalism has clinched political power. President Trump even while in the private sector has always maintained that America is being ripped off in her global trade deals and global leadership. By electing him, Americans have made a choice.

Since coming into his second tenure on 20th January, 2025, President Trump has taken numerous actions such as signing about 112 executive orders from EO 14147 to 14528 to enable his government execute the flagships of his policies. Deportation of immigrants has commenced. New trade tariffs have been imposed on Canada, Mexico, China and Europe. In retaliation, Canada, China have imposed new higher tariffs on America. If we examine the policies, there is the need for America to execute its immigration policies, deport illegal immigrants especially those with criminal records and be more stringent and vigilant with its border checks especially with its South American neighbours like Mexico, Colombia, Guatemala etc. If you watched Anderson Cooper’s CNN programme, The Whole Story in 2024 on the menace and desperation of Immigrants from Mexico, Colombia, Guatemala etc to illegally migrate to America, you will pity America. The claim against immigrants is that they are taking houses from citizens. It is also alleged that they are bankrupting the welfare systems and jumping the queues for public service as well as bastardizing the culture that made America and the West prosperous. These arguments are debatable but no country no matter how benevolent leaves its borders to the whims, caprices and manipulations of immigrants. America must rise up to its immigration challenges. However, these immigration checks and deportations must be done with human face respecting human rights.

America has built a world order which sustained relative global peace, development and prosperity. At the height of its greatness, America cannot abandon its entrenched world order, structures, values and soft power. Recently, China hosted the 25th Heads of Council meeting of the Shanghai Cooperation Organization (SCO) from 31st August to September 1St 2025. About 24 Heads of State attended including President Vladimir Putin of Russia, Prime Minister Modi of India and President Kim Jong Un of North Korea. On 3rd September, 2025, China held its Victory Day Parade in Tiananmen Square in Beijing, which marked the 80th Anniversary of the end of the second World war. In these two events, China showcased itself as the standard bearer of the multipolar world piloted by the global south against the US led world. This is the regrouping of the Axis of Evil. The World looks up to US and its allies to checkmate the resurgence of the Axis of Evil. As Dr Chidi put it in his article, As Trump enrolls in the Evil Axis, “the defining mission and character of America is the pursuit of a kinder, gentler nation which would wield its soft power around the world without leaving doubts that its strength lay in its soft power.”

. Dr Umunnaehila is a Chartered Stockbroker, a commodities broker, a Financial, Economic and Management Consultant who holds a Ph.D in Business Administration from Babcock University,Nigeria. He is the CEO, AllwellBrown Consulting Ltd, an author, a seasoned scholar and Investment trainer. He is also a Fellow of Chartered Institute of Stockbrokers (CIS), Member, Chartered Institute of Securities and Investment (CISI), Member, Capital Market Academics (CMA) and a licensed Securities Dealer with Securities and Exchange Commission, Nigeria. He can be reached on [email protected]